Format: Cost Sheet

Name of the Company

Statement of Cost
For the Year Ended----------------

Particulars Tk Tk
1. Material consumed:
Opening stock of Raw Material Xx
Add: Purchase Xx
Less: Closing stock of Raw Material Xx
Less: Purchase Discount Xx
Add: Freight In Xx
--------------- Xxx
2. Direct Labor / wages Xxx
3. Chargeable/Direct Expenses Xxx
----------------
4. Prime Cost (1+2+3) xxx
5. Factory Overhead/ Expenses/ Factory on cost xx
Indirect Labor/ wages xx
Depreciation xx
Factory Insurance xx
------------ Xx
----------------
6. Works Cost / Factory Cost (Gross) (4+5) xxx
[
7. Adjustment for Inventories:
Add: Work –in-process(Opening) xx
Less: Work –in-process(Closing) xx
Less: Sale of Scrap Xx xxx
-------------- ----------------
8. Works Cost/ Factory Cost (Net)(6+7) xxx
xxx
9. Administration Overhead --------------
10. Cost of Production(8+9) xxx

11. Adjustment for finished Goods Inventories:

Add: Finished Goods(Opening) Xx
Less: Finished Goods(Closing) Xx xxx
--------------- ----------------
12. Cost of Goods Sold(10+11) xxx
13. Commercial Expenses:
Office expenses/ Rent
Selling and distribution expenses Xx
Advertising Expenses Xx
Freight Out xx
Carriage Outward xx
xx
--------------- xxx
14. Cost of Sales(12+13) xxx
15. Profit (16-14) xxx
xxxx
16. Sales( 14+15)
==========
1
 Exercises
1. From the following information, prepare a cost sheet of ABC Ltd for period ended on 31st
March 2010
Taka
Sales- 275000
Inventories (01.01.2010)
Materials 3000
Work-in –progress 4000
Finished Goods 8000
Raw Materials purchased 110000
Direct Labor 65000
Chargeable Expenses 10000
Inventories (31.12.2010)
Materials 4000
Work-in -progress 6000
Finished Goods 7000
Other Expenses:
Factory Overhaed@50% of Direct Labor
Administration overhead @ 10% 0f Works cost
Selling Overhead @ 5% of sales

2. Prepare a Cost sheet from the following information of Swapna Co. Ltd for period ended on
31st December 2020.

Particulars Taka
Raw material used Tk 25000
Work –in-process(Opening) 5000
Work –in-process(Closing) 6000
Finished Goods(Opening) 13000
Finished Goods(Closing) 8000
Direct wages 10000
Direct Expenses 5000
Factory on cost 3000
Indirect Labor 2000

Office Expenses 5% on prime cost, selling expenses 3% on factory cost and profit 20% on sales
are to be taken into account.

2
Note: 01
20% of Sales, 20% of Cost
Cost = Sales - Profit Sales= Cost + profit
= 100 - 20 = 100+ 20
= Tk 80 = Tk 120

Cost Tk 80 then Profit = Tk 20 Cost Tk 100 then Sales= Tk 120

Tk 1 then Profit=

TK 52320 then profit=

3. From the following information, prepare a cost sheet of Royal Com. Ltd for period ended on
31st March 2006.

Taka
Opening stock of raw material 12,500
Purchases of raw material 1,36,000
Closing stock of raw material 8,500
Direct wages 54,000
Direct expenses 12,000
Factory overheads 100% of direct wages
Office and administrative overheads 20% of works cost
Selling and distribution overheads 26,000
Cost of opening stock of finished goods 12,000
Cost of Closing stock of finished goods 15,000
Profit on cost 20%